Lean Six Sigma Assessment Tool

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1 Lean Six Sigma Assessment Tool January 2009 Version 1.1 page 1 of 14

2 Lean Six Sigma Assessment Bert van Eekhout, 1. Participant Profile Please complete the following background information regarding your company and the specific plant you are assessing. Parent company name: Business Unit: Industry (core business): Plant name: Plant Location: Name (assessor): Telephone Number: What is your current position? How many years have you been in this position? How many years have you been with this company? Products made in this plant: Commodity Name(Reference): Revenues (annual sales): Net Income: Number of employees in the plant: Square footage of plant: Plants Supplied: Type of product 1 (commodity, specialty, simple, multi-component) Type of product 2 (cheap, medium, expensive) Type of product (half-product, endproduct) Type of process 1 (discrete, continues, process, semi-process) Type of process 2 (project industry, repetitive small batch, repetitive large batches) Control model (MTO, MTS) Customer (Business, End-user, etc.) page 2 of 14

3 2.1 General Assessment In general, an unsuccessful company is a company that does not satisfy customer needs in a profitable way. Indicate the level of profitability and customer satisfaction in your company. 1 = not anywhere; 2= some areas; 3 = not in majority; 4 = many areas; 5 = everywhere, 1. Customers not satisfied with your quality. 2. Customers not satisfied with your price. 3. Customers not satisfied with your delivery performan. 4. Customers not satisfied with your 5. Low profitability caused by market pressure 6. Low profitability caused by high cost level 7. Low profitability caused by. The defect rate, or PPM or DPMO is generally measured as the defects in the process. Rework is then a defect. The defect rate after the process is the rate after the process but before inspection. The defect rate at the customer is measured with the defects that occur at the customer. Process or product group defect rate in process defect rate after process defect rate at customer page 3 of 14

4 2.2 Six Sigma Pre-Assessment (before startup) In general, Six Sigma means the elimination of defects throughout the production process. Indicate the level of opportunity for Six Sigma in your company, department. 1 = not anywhere; 2= some areas; 3 = not in majority; 4 = many areas; 5 = everywhere, 1. Hidden Factory - Need for inspection. The process needs an extensive amount of inspection In and after the process. 2. Hidden Factory - Rework and Scrap. The process creates a large amount of Rework and Scrap 3. Hidden Factory - Customer Complaints. The process delivers products/services with many customer complaints. 4. Inefficiency - The process has many unnecessary inefficiencies causing a high cost level. 5. Complexity - Symptoms have many causes. 6. Complexity - Causes - effects structures are complicated. 7. Uncertainty - Cause - effects relations are uncertain. 8. Uncertainty - Solutions for cause are uncertain. 9. Data not available - Data to analyze relations between causes and effects is not available or not reliable. 10. Resources not available - Resources for running the Six Sigma program is not available or not on the right level. 11. No Sense of Urgency - No good reason to improve. 12. Significance - Improvements will have no significant impact on the organisations ability to meet its goals. 13. No chance of success - The past shows us that improvement initiatives have a poor chance to succeed. 14. No Leadership commitment - There is no commitment from leadership to communicate the vision, to participate in the process or to provide the necessary resources. page 4 of 14

5 2.3 Six Sigma Assessment (during or after startup) 1 = not at all; 2= no or a little; 3 = neutral; 4 = yes, some; 5 = yes, certainly 1. Commitment - Leadership has been trained in the Six Sigma concepts and methodology. 2. Commitment - Leadership has identified drivers for implementing Six Sigma. 3. Commitment - Business opportunity analysis has been performed based on market position, competitive assessment, and corporate performance 4. Commitment - The cost and benefit analysis of the Six Sigma initiative has been completed and utilized in making commitment to Six Sigma. 5. Commitment - A commitment to Six Sigma and expectations in growth and profitability have been developed and communicated to all employees. 6. Commitment - CEO has established a quantifiable and verifiable measure of success of the Six Sigma initiative. 7. Champion - The corporate Six Sigma Champion directly reports to CEO or equivalent. 8. Champion - The Six Sigma Champion has necessary resources and autorithy to make decisions about the Six Sigma Initiative. 9. Champion - The Champion has necessary leadership, sales and persuasion skills. 10. Key Areas - A list of potential projects based on business opportunity analysis that would contribute to the profitability of the company has been developed. 11. Key Areas - Projects have been prioritized based on their impact on customer satisfaction, performance improvement, sales, profitability, employee satisfaction, etc. 12 Planning for Six Sigma - Staff has been trained in project management, statistical thinking, innovative thinking and process thinking 13. Planning for Six Sigma - A Six Sigma Roadmap and an implementation plan have been developed with clear milestones in various departments. 14. Planning for Six Sigma - Critical resources making the Six Sigma initiative successful have been identified. 15. Planning for Six Sigma - Departmental expectations have been established, documented, and communicated. 16. Planning for Six Sigma - Barriers to the progress of Six Sigma have been satisfied and addressed for mitigation. page 5 of 14

6 17. Performance Measurement - A corporate scorecard has been established to monitor savings and changes in growth and profitability. 18. Performance Measurement - Periodic communication meetings to report progress of the Six Sigma initiative have been scheduled. 19. Performance Measurement - Performance levels and trends of key perform. metrics of departments are reported 20. Performance Measurement - Executive review process of the Six Sigma initiative has been established. 21. Performance Measurement - Method to share and promote success stories with stakeholders has been set up. 22. Performance Measurement - Corrective Actions are defined. 23. Training - Overview of the Six Sigma methodology has been presented to and understood by all employees. 24. Training - Six Sigma training needs have been assessed based on the list of projects. 25. Training - Candidates for Black and Green Belts training have been identified based on established requirements. 26. Training - Black and Green Belt training schedule has been established along with the projects. 27. Training - Expectations for improvement for Black Belt and Green Belt certified employees are clearly communicated. 28. Verify Impact - Project completion is verified against established goals. 29. Verify Impact - Savings are verified for each project. 30. Verify Impact - Corporate scorecard is updated, assessed against profitability and growth, and reported to employees. 31. Recognition - Recognition program is established. 32. Recognition - Platform to share success and lessons learned is established. 33. Recognition - A project depository has been set up to archive process improvement results and knowledge gained. 34. Develop resources - New candidates for GB and BB arte periodically reviewed and trained. 35. Institutionalize - A process to identify and select projects has been established. 36. Institutionalize - New teams for projects are formed. 37. Monitoring - CEO and Staff review the Six Sigma initiative regularly for its adequacy and suitability. page 6 of 14

7 38. Monitoring - Executive team updates the Six Sigma initiative with new ideas for maintaining employee excitement and commitment. 39. Monitoring - Feedback is used to improve the initiative. Maturity 40. Maturity - Leadership support: 1=1 or 2 visionaries, 2=Validated, 3=Across Company, 4=expected, 5=ingrained 41. Maturity - Training: 1=champion, 2=external, 3=external custom, 4=internal, e-learning, 5=internal, specialty 42. Maturity - People: 1= driven few, 2=more believers, 3=career development, 4=repatriated, 5= majority 43. Maturity - Project Selection: 1=burning platform, 2=low hanging, 3= copy success, 4=idea pipeline, 5=formalized evaluation 44. Maturity - Financial Impact: 1=ad hoc, 2= cost reduction, 3=consistency, EP, 4=validation, 5=general ledger 45. Maturity - Reporting: 1=anecdotal, 2=aggregate, average, 3=aggregate, average, 4= Cross organization, 5=multi year history 46. Maturity - Software: 1=nothing, 2=excel stats, 3=project tracking, 4=portfolio management, 5=strategy & portfolio management 47. Maturity - Strategy: 1=nothing, 2=nothing, 3=maps, goals, 4=project roll-up, 5=full closed-loop 48. Maturity - Beyond DMAIC: 1=nothing, 2=nothing, 3=nothing, 4=DFS, Lean, 5=IT, Product Development 49. Maturity - Culture Change: 1=nothing, 2=nothing, 3=nothing, 4=nothing, 5=DNA of organisation 50. Maturity - Overall Phase: 1=launch, 2=early success, 3=scale repetition, 4=institutionalisation, 5=culture transformation page 7 of 14

8 2.3 General Lean Assessment In general, Lean manufacturing means the elimination of waste throughout the production process. Indicate the level of waste in your company, department. 1 = not anywhere; 2= some areas; 3 = not in majority; 4 = many areas; 5 = everywhere, 1. Overproduction - Building more than is required, buying equipment or designing process with excess capacity 2. Waiting imposed by an inefficient work sequence - Idle time that is built into the process to wait on materials, machine cycles, etc. 3. Motion not essential to direct work flow - Unnecessary, non-value added handling and movement of parts or materials. 4. Waste in the work itself - Excessive downtime, inefficient set-up techniques, performing operations that are not necessary. 5. Inventory in excess of immediate needs - Any inventory above the absolute minimum required. 6. Motion that does not contribute to work - Any operator motion or walking that does not add value to the part. 7. Waste from rejected parts - reject waste includes rework, scrap, lost production opportunity. page 8 of 14

9 Detailed Assessments 3. Strategy 1. Describe the supply chain network (production, warehouses) 2. Describe the breakdown structure of all main activities 3. Describe the company strategy 4. Describe the customer service policy for each customer market segment 5. Is the company aiming for cost leadership or service leadership or both? 6. What is the current position? 7. Describe your product lines with annual sales and % of your business 8. Describe the overall competitive environment in the major industries you serve. 9. What is your overall marketing strategy? 10. Who are your major competitors? 11. How do your major competitors distribute their products? 12. Why would your customer purchase products from competitors rather than from you? 13. What are the estimated market shares in your major markets? 14. Describe the market channels used in de major industries you serve. 15. What changes are likely to occur in the structure of each market segment, 16. How will these changes affect the relative importance each segment? 17. Will achievements of the company s current performance make it a leader in its industry? 18. Describe opportunities in collaboration with supplier and customers. 19. What are costs as percentage of the selling price? 20. What are the cost of main activities? 21. How can costs be reduced without adversely influence the customer service levels? 4. Demand & Supply 1. How does your customer service and cost-performance levels compare to your competitors? Is this a competitive advantage to your organisation? 2. Are customer service, inventory levels and capacity utilisation are in the right balance? 3. How do you control the process of delivering to your customers promise? 4. Do you feel you have the right level of control? 5. How much money do you have tied up in invent., machines etc? Is this the right level? 6. What are the levels of fluctuations in capacity utilisation (people, machines, etc.)? 7. To what extend are these fluctuations a one-to-one translation of market fluctuations? 8. To what extend are these fluctuations created by the organisation itself? 9. Who in your organisation is responsible for overall cost performance? 10. Who in your organisation is responsible for overall for customer service? 11. What is closer to reality :.. normally my organisation runs like a clock in terms of delivering according to plan.. or a lot of times we have to firefight due to lack of communications or collaboration? 12. What, in your opinion, are the main barriers which have to be removed to drastically improve the performance of your organisation? page 9 of 14

10 5. Sourcing & Procurement 1. What is the share of purchasing costs in relation to the total spend? 2. What would the effect be on the company s ROI if you would be able to save 2% on purchasing costs? (around 25% increase is not unusual..) 3. What percentage of your organizations spend is covered by contracts? 4. How many suppliers do you have? Will they be less or more in the future? 5. How many purchase orders do you process weekly/monthly? 6. What are your costs per purchasing transaction? (create order, send it, confirmation, receipt, quality test, record, invoice, pay) 7. How much would you like to save on this amount? 6. Manufacturing & Operations 1. How much value do you add and what are the components of added value? 2. What is your role in the total supply chain and where do you focus on? 3. What is the core competence of your company? 4. What product groups and variants do you have? 5. Which product groups and variants are profitable? 6. What is your delivery performance and how do you measure it? 7. How reactive and flexible is your company? 8. How efficient is your production? 9. What is your defects level and what are the main causes? 10. What are the defect levels per process step? 11. What is the inventory value and the inventory turnover? 12. What is the ratio of processing time versus throughput time? 13. What is your bottleneck capacity and for what reason? 14. What is your uptime percentage and what are the main reasons for downtime? 15. What kind of different planning types do you have? 16. How often do you change your planning and what are the reasons for change? 17. What are the 3 main indicators to monitor your business? 18. What are the checkpoints in your processes? 19. How do you inform your employees about the actual performance? 7. Information System 1. Is there anything in your reporting system that is particularly beneficial (or deficient) in assisting you in managing your responsibilities? 2. If someone asked you to identify the one single critical issue or dysfunctional ("broken") aspect of the company information systems, what would you say? Why? 3. What are the five major systems that are critical to you? 4. Rank the importance of the system in the areas of strategic and operational importance as high, medium, or low. Strategic importance refers to the impact a system has on the competitive positioning of the business. Operational importance refers to the impact a system has on the actual running of the business (i.e., the business cannot run without it). 5. Do you have the feeling that your organisation makes sensible use of current information technology? 6. What percentage of your revenue do you spent on IT? 7. What value does this bring to your company? page 10 of 14

11 Bijlage 1: Metrics Turnover # Employees # End products # Stock keeping units Business Unit... Business Unit... Business Unit... Business Unit... Business Unit... # Suppliers # Purchase-items # Purchase orders # Purchase orderlines Purchase value Fill rate from supplier % mistakes # Customers # Customer orders # Customer orderlines # Pick-orders/day # Rush orders # Customer Complaints Stock-value (in mln) Stock turnover Customer service level (Stock) Fill rate to cust.(incl.non-stock) Lead time (production included) Delivery-time from Stock % Perfect orders # Sales invoices # Debtors # Purchase invoices page 11 of 14

12 Bijlage 2: Cultuur karakteristieken Geef aan hoe de cultuur van uw onderneming het best te karakteriseren is, door het van toepassing zijnde getal te omcirkelen. Als de betekenis onduidelijk is, niets omcirkelen s.v.p. De cultuur is: Flexibel Inflexibel Mens georiënteerd Taak georiënteerd Pro-actief Reactief Participerend Directief Team georiënteerd Individualistisch Vertrouwend Controlerend Invoelend Niet invoelend Korte termijn Lange termijn Resultaat gericht Procedure gericht Open Gesloten Ondernemend Bureaucratisch Risico nemend Risico mijdend Financieel gericht Techniek gericht Sociaal Niet sociaal Klantgericht Intern gericht page 12 of 14

13 Bijlage 3: Vragen Individuele Interviews 1. Voor welke activiteiten ben je verantwoordelijk? 2. Welke hulpmiddelen staan je ter beschikking voor het goed uitvoeren van de functie? a. Werkinstructies b. Procedures c. Aanwijzingen van de leidinggevende 3. Wat zijn de doelen die worden nagestreefd. Zijn er: a. Heldere doelen voor de plant? b. Doelen voor uw onderdeel/afdeling/team? c. Prestatie-indicatoren 4. Hoe weet je of jij je werk goed hebt gedaan? a. Wordt er teruggekoppeld? b. Hoe gebeurt dat? c. Door wie/wat? 5. Wat zijn algemene knelpunten in de huidige situatie? Denk bijvoorbeeld in termen van: a. middelen, b. materiaal, c. methode, d. mens & organisatie, e. meting en f. externe factoren 6. Hoe vaak komen knelpunten/verstoringen voor? 7. Waardoor worden ze veroorzaakt? Wat is het effect? 8. Hoe zijn verstoringen te voorkomen, op te lossen? 9. Welke verbeteringen stel je voor? Denk bijvoorbeeld aan: a. werkmethode, b. werkvoorbereiding, c. transport, verplaatsing d. organisatie, e. planning, f. materiaalvoorziening, g. gereedschappen, h. communicatie, overleg, i. training, j. administratie, etc. k. Welke verstoringen komen daarbij voor? 10. Welke ICT hulpmiddelen zouden overwogen kunnen worden? 11. Waarom kiest een klant voor...? Wat is onderscheidend? page 13 of 14

14 Bijlage 4: Evaluatie Six Sigma Pilot NAAM:. DATUM:. 1= helemaal niet, 2= niet, 3 = neutraal, 4 = wel, 5 = zeker wel 1. Ben je tevreden over het projectresultaat? 2. Ben je tevreden over de projectorganisatie? 3. Heeft het project gebracht wat je ervan verwachte? 4. Heeft Six Sigma voldoende toegevoegde waarde gehad? 5. Is Six Sigma geschikt voor...? 6. Moet Six Sigma prioriteit krijgen bij...? 7. Was de training voldoende om deel te kunnen nemen aan de pilot? 8. Vind je dat je genoeg hebt kunnen bijdragen aan de pilot? 9. Welk onderdeel van Six Sigma heeft grote voordelen gehad in de pilot? 10. Wat heb je van de Six Sigma pilot met name geleerd? 11. Wat zou je, bij toepassing binnen..., aan de methode toevoegen? 12. Wat zou je, bij toepassing binnen..., uit de methode weglaten? 13. Wat is noodzakelijk om Six Sigma bij... tot een succes te maken? 14. Wat vind je van je tijdbesteding voor de pilot? Had je voldoende tijd? Koste het veel tijd? 15. Was er voldoende ondersteuning van je directe chef om deel te nemen? 16. Welk rapportcijfer geef je aan het Six Sigma project? page 14 of 14

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